WallStSmart

Reliance Steel & Aluminum Co (RS)vsTernium SA ADR (TX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ternium SA ADR generates 9% more annual revenue ($15.61B vs $14.29B). RS leads profitability with a 5.2% profit margin vs 2.7%. TX appears more attractively valued with a PEG of 0.13. RS earns a higher WallStSmart Score of 59/100 (C).

RS

Buy

59

out of 100

Grade: C

Growth: 5.3Profit: 5.5Value: 9.3Quality: 8.5
Piotroski: 3/9Altman Z: 4.41

TX

Hold

47

out of 100

Grade: D+

Growth: 2.0Profit: 4.0Value: 7.3Quality: 6.8
Piotroski: 3/9Altman Z: 3.34
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RSUndervalued (+15.5%)

Margin of Safety

+15.5%

Fair Value

$426.32

Current Price

$290.56

$135.76 discount

UndervaluedFair: $426.32Overvalued
TXSignificantly Overvalued (-202.5%)

Margin of Safety

-202.5%

Fair Value

$14.96

Current Price

$37.48

$22.52 premium

UndervaluedFair: $14.96Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RS3 strengths · Avg: 9.0/10
Altman Z-ScoreHealth
4.4110/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

TX4 strengths · Avg: 9.5/10
PEG RatioValuation
0.1310/10

Growing faster than its price suggests

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.3410/10

Safe zone — low bankruptcy risk

P/E RatioValuation
17.0x8/10

Attractively priced relative to earnings

Areas to Watch

RS3 concerns · Avg: 3.3/10
PEG RatioValuation
2.294/10

Expensive relative to growth rate

Profit MarginProfitability
5.2%3/10

5.2% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

TX4 concerns · Avg: 3.0/10
Return on EquityProfitability
1.9%3/10

ROE of 1.9% — below average capital efficiency

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

Operating MarginProfitability
4.7%3/10

Operating margin of 4.7%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : RS

The strongest argument for RS centers on Altman Z-Score, Debt/Equity, Price/Book. Revenue growth of 11.9% demonstrates continued momentum.

Bull Case : TX

The strongest argument for TX centers on PEG Ratio, Price/Book, Altman Z-Score. PEG of 0.13 suggests the stock is reasonably priced for its growth.

Bear Case : RS

The primary concerns for RS are PEG Ratio, Profit Margin, Piotroski F-Score.

Bear Case : TX

The primary concerns for TX are Return on Equity, Profit Margin, Operating Margin. Thin 2.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

TX carries more volatility with a beta of 1.19 — expect wider price swings.

RS is growing revenue faster at 11.9% — sustainability is the question.

RS generates stronger free cash flow (203M), providing more financial flexibility.

Monitor STEEL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

RS scores higher overall (59/100 vs 47/100) and 11.9% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Reliance Steel & Aluminum Co

BASIC MATERIALS · STEEL · USA

Reliance Steel & Aluminum Co. is a metal service center company. The company is headquartered in Los Angeles, California.

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Ternium SA ADR

BASIC MATERIALS · STEEL · USA

Ternium SA manufactures and processes various steel products in Mexico, Argentina, Paraguay, Chile, Bolivia, Uruguay, Brazil, the United States, Colombia, Guatemala, Costa Rica, Honduras, El Salvador and Nicaragua. The company is headquartered in Luxembourg City, Luxembourg.

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